Update: Apparently there's actually something good in this update! Too bad they didn't actually include it in the press release, but the Xbox 360 will support DivX and XviD! Hurray! Here's what we got from the Xbox team:

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**15. What types of AVI files are supported?

The Xbox 360 supports files encoded using MPEG-4 Part 2, Simple and Advanced Simple Profile. These files are often referred to as Xvid or DivX® video files. Many common PC DVD authoring tools, cameras, and camcorders are capable of encoding files using MPEG-4. Note that some files authored for DivX devices may also contain additional functionality(menus, subtitles, multiple audio tracks, etc). The Xbox 360 will attempt to play these files, but does not support any of the additional functionality and in some cases will be unable to play the file.

16. Why don't some of my older versions of DivX® files play?

Since we only support Mpeg-4 compatible codec implementations, we will not be able to play video files older than DivX® 5.0.

Original post, before we knew about DivX:

We thought that the previously released details of Xbox 360's Fall Update were kinda lame, and hoped the rest of the yet-to-be-released features would make up for the fact that seeing your friends' friends, parental timers, and downloadable Xbox 1 games are so-so at best. No such luck. Microsoft's just dropped the rest of the details, and they're not so great either.

The new features are Xbox LIVE Arcade Hits (a plan to discount older XBLA games permanently), Inside Xbox (a news stream from Xbox.com to your Dashboard), an enhanced online profile (you can enter in more details about yourself), full-screen movie previews, and slightly changed navigation. Here's the full release:

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MORE DOWNLOAD OPTIONS:

Xbox Originals - With this new service, announced on Nov. 13, consumers can download-to-own full original Xbox games that were previously only available at retail. The digital shelves will always be stocked with classic titles, such as "Crash Bandicoot: Wrath of Cortex," "Crimson Skies: High Road to Revenge," "Halo," "Fable," "Fuzion Frenzy," "Psychonauts," and more as the catalogue grows over time, at 1200 Microsoft Points per game.

· Xbox LIVE Arcade Hits - On Xbox LIVE Arcade, the Arcade Hits program kicks off where some of the best sellers will become available at permanently reduced prices, making it easier than ever for everyone to build a library of downloadable games! The first games to become Arcade Hits will be "Bankshot Billiards 2" and "Lumines LIVE," which will be available for 800 Microsoft Points each, and "Marble Blast Ultra," "Small Arms" and "Zuma Deluxe," which will be available for 400 Microsoft Points each. With free trial downloads for every game and over 100 games to choose from, Xbox LIVE Arcade offers something for every member of the family.

NEW WAYS TO KEEP UP TO DATE AND CONNECTED:

· Inside Xbox - A new direct feed brings current news straight from Xbox.com into the Xbox LIVE Dashboard providing members an easy, predictable entry point where they can discover what's new in: game releases, events, and Xbox LIVE Marketplace offers.

· Enhanced online profile - Members interested in sharing a few more details about themselves will have the option to go beyond their motto and further personalize their profile with an expanded bio. The extended bios will be visible to "Friends Only" or the entire Xbox LIVE community.

· Expanded Friends List access - A quick and easy way for gamers to expand their personal community on Xbox LIVE, members will be able to see the Friends Lists of other Xbox LIVE members, boosting their social networking experience on the service.

ENHANCED OVERALL EXPERIENCE AND CONTROL:

Enhanced Parental Controls - Family Timer, a strong and flexible new addition to the Xbox 360 Family Settings, enables parents to set the amount of time their Xbox 360 can be used on a per-day or per-week basis by their children or other members of the household.

New video features - The convenience of full-screen movie previews and enhanced video codec support further expand the options when it comes to the Xbox 360 entertainment experience.

· Easy-to-use navigation features - With several noteworthy changes in the Xbox LIVE Dashboard, from the new Game Store button to the Video Store button to enhanced visuals and descriptions in the video library, Xbox LIVE members can find what they want, when they want it.